Domestic tyre demand is estimated to grow at 6-8% in FY2026, with likely improvement in replacement demand in H2 FY2026 aided by GST rationalisation. 

Tyre exports hit a speed bump with higher US tariffs on select categories of Indian tyres compared to tariffs on competing nations. 

Operating margins to inch up in H2 FY2026 supported by stabilisation of natural rubber (NR), price hikes in the past, and moderation in crude oil price. prices.

Exhibit: Growth trend in vehicle production and tyre demand 1.0% 4.5% 8.0% 2.6% 5.9%

Source: ATMA, SIAM, ICRA Research